4Q2023 MARKET REPORT
FOR BOTH BUYERS AND SELLERS – PATIENCE IS THE OPERATIVE WORD
The Provincetown and the Outer Cape real estate markets had mixed results in 2023 as stubborn, lower levels of inventory continue to lead to lower sales. But, patient and determined buyers are still finding their dream homes even as demand continues to influence the market and sales prices continue to increase in all categories here on the Outer Cape. Interestingly enough though, of Provincetown, Truro and Wellfleet, it is Wellfleet that had the most balanced, all-around market, with both higher sales and higher prices.
This classic lower inventory and high demand dynamic is also exacerbated by a profound lack of ability to construct additional dwelling units, especially here in Provincetown where there is almost no place to expand. Limited availability, along with continued higher interest rates – currently around 7% – continues to put additional strains on the market.
Even with these less-than-optimal conditions, our Provincetown and Outer Cape real estate market ALWAYS seems to outperform the rest. I believe that will not change going into 2024.
In Provincetown, sales were down in every category, but sale prices were up! Condominium sales were down 26% from 135 to 100. Sale prices were up 5% from $868K to $937K. 28% of all those sales sold over the asking price. This does mean though, that 72 units (72% of total sales) did sell at or below asking. This provides some comfort to buyers as many mid-market properties are selling at or below asking prices.
There are only 19 condominiums on the market listed in MLS as of January 3rd. The average asking price for these condominiums is $1.036M ($1,583 per square foot).
Single-family home sales were down 39% from 31 sales last year to 19 sales this year. The average sales price increased 10% to $2.4M from $2.19M.
Currently, there are only 15 single-family properties on the market with an average asking price of $4.1M ($1,523 per square foot).
TRURO AND WELLFLEET
Both Truro and Wellfleet performed generally even with last year, as inventory levels more commensurate with demand, provided a better balance between buyers and sellers.
The average single-family sales price in Truro was flat at $1.6M. Sales were up 9% to 36 from 33. Currently, there are only 10 single-family properties on the market with an average asking price of $1.873M ($982 per square foot).
Truro condominium sales also decreased – down by 5% to 24 from 25 last year. The average sale price decreased 13% to $495K from $570K. There are only 5 condominiums on the market with an average asking price of $676K ($1,145 per square foot).
In Wellfleet, the average sales price of single-family homes was up 17% to $1.2M from $1.02M. Sales were up 6% to 66 from 62. There are currently only 13 single-family properties on the market in Wellfleet withan average asking price is $2.514M ($896 per square foot).
AS WE WELCOME THE NEW YEAR, WE WILL CONTINUE TO SEE STRONG MARKET ACTIVITY AS BUYERS SEARCH FOR THEIR VERY SPECIAL HOME HERE ON THE OUTER CAPE
Most importantly, as we begin the New Year, we are all hoping that 2024 brings peace and a much-needed respite from all the drama and the uncertainty occurring throughout the world.
Closer to home, as we close out the real estate market for 2023 on the Outer Cape, I believe we will continue to see higher average sales prices along with an extremely vigorous, buyer demand for Outer Cape property. The upward pressure on prices caused by this ongoing high demand and sustained lack of inventory will undoubtedly have a strong effect on sales throughout all of 2024. And patient buyers, who are actively searching for a new home here on the Outer Cape, will hopefully find just what they are looking for in the new year.
Even as some of these, and other outside forces effect our beloved Provincetown and Outer Cape real estate market, we can still take comfort in knowing we will continue outperform most other markets.
How lucky are we!
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